From Trump’s illusions to the realities of the U.S. market

Homeowners in the United States are not experiencing good times! The onset of the tariff war between Washington and Beijing has created different conditions for homeowners in the U.S. These conditions stem from the fact that most household tools in the United States are made in China—from lawnmowers to drywall!

On April 2 this year, the U.S. government announced its “reciprocal tariffs,” affecting over 180 countries and regions worldwide. On the same day, a businessman named Xiong from Hangzhou, Zhejiang Province in eastern China, felt confused. Xiong, the general manager of a construction company running a custom summer home business, said, “It’s hard to discern how tariffs will impact our business, and like many others, we have prepared backup and alternative plans.” 

However, Xiong pointed out something that, if solidified on a macro level in the United States, could become Trump’s Achilles’ heel in the tariff war. Xiong stated, “Just today, we received an invitation from a client based in Boston, USA, to conduct a field survey at a ski resort, and if this deal is finalized, it will generate $2 million in revenue for us.” 

The fundamental issue is that Xiong and other Chinese traders still have access to a vast database of American clients who continue to entrust Chinese companies with supplying equipment, tools, and even constructing commercial and residential infrastructure.

Xiong referenced a statement from his Boston-based client:

“Life must go on even with tariffs, and not earning revenue at the Boston ski resort is unacceptable. The only way is to first accept the tariffs and then ultimately pass on the increased costs to visitors through methods like higher administrative fees.”

This scenario could function as a “credit workflow cycle” in the U.S.: as tariffs increase, Chinese companies adjust their services to ensure the final cost remains more cost-effective for American clients. Here, the cost increase (due to tariffs) is inevitable, but the additional cost burden falls on American citizens, not the Chinese!

Chinese companies are flexible

The example mentioned is just one instance of the flexibility in mutually beneficial trade flows and commercial relationships between American and Chinese companies in the construction and maintenance of residential and commercial buildings.

Several Chinese suppliers have also observed the negative impact of heavy U.S.-imposed tariffs on this sector; however, this impact will be felt more by American consumers, as these tariffs increase the cost of building homes in the U.S. and lower living standards.

It’s no surprise that many senior trade and economic analysts view Trump’s reckless initiation of a tariff war with other countries, particularly China, as synonymous with further reducing the economic maneuverability of American citizens. In this equation, the U.S. economic war equates to a form of self-inflicted damage to the country’s credit-commercial structure. 

A cycle that doesn’t benefit the U.S.

Although a significant portion of building materials for homes in the United States is imported from Canada and Mexico, industry players in the U.S. believe that tariffs on a wide range of goods from China will inevitably increase costs in the home construction sector.

The U.S. government has imposed a 145% tariff on Chinese goods and a 10% tariff on imports from most other countries. These tariffs will affect Chinese products essential to the U.S. home construction sector. Several major Chinese appliance and construction fixture companies have emphasized that American homeowners will face higher prices due to these tariffs. 

Yi Wen, the owner of a building materials company based in Guangdong Province in southern China, told Global Times: “China is a key supplier of many critical materials for the U.S. construction industry. From observations and data collected from clients, ‘Made in China’ fasteners (nails and screws), LED lights, and decorative building materials account for nearly half of the U.S. construction services market share.” 

Low resilience of American consumers

Despite the additional costs caused by tariffs, Chinese products remain the top choice for U.S. procurement managers due to their stable quality, comprehensive supply chain advantages, and responsiveness.

Zhong Shangtian, another owner of a home construction company based in Guangdong, emphasized that, in addition to bolts and hardware accessories, the U.S. heavily relies on Chinese-made drywall, lumber, and wood products such as plywood and magnesium oxide wallboards, a newer type of building material. This dependency does not disappear with the imposition of widespread tariffs; instead, it leads to economic pressures being borne by homeowners, companies, and construction facilities across various U.S. states. 

This is an equation Trump experienced once before between 2017 and 2021 (during his first presidency), and it is now being redefined with greater risk, without considering the behavioral calculations of consumers and their steady market demand!

Trump claims that his tariff war policy (particularly against China) will, in the long term, lead American citizens to favor domestically produced products, services, and goods. However, the key question is: even if Trump’s claim is valid, do American citizens have the necessary resilience in the short and medium term to sustain the tariff war? The answer appears to be negative. 

While many of these infrastructures and products can be produced in the United States or Canada, low-cost offerings from China remain something American builders rely on. More importantly, Chinese companies, in response to the U.S. tariff war, have invested in strategies to diversify their markets, such as entering new markets in ASEAN and Europe, as Trump’s tariff policies have reduced some market demand.